GDP of Japan in 2023 - Expenditure Approach, Sector Output, and Regional GDP

In the past decade or so, Japan’s private consumption performance has not been as expected. Among OECD or similar economies, Japan’s private consumption as a percentage of total GDP has been at the bottom group of the OECD. But this is also the case in many advanced industrial markets that rely on exports, such as South Korea, Germany and Taiwan. But unlike many have assumed, the biggest factor behind Japan’s private consumption slump is not the savings rate. According to data recently released by the Cabinet Office of Japan, before the pandemic, Japan’s savings rate is very low, almost below 3%. Over the years, policymakers have attempted to address this issue through various initiatives, with one of the most prominent being the Maekawa Report in 1980. The report aimed to boost domestic demand by reducing income tax to increase disposable income and reduce work h...